Showing 1 to 19 of 19

Graph 1
Graph 2
If the law is passed to install new devices, then the cost of producing a toilet seat increases. Thus, the
average cost increases, causing the average cost curve to move up on the graph. It may even shift until
its lowest point lies on the

1.
2.a)
Each firms will make profits as shown since the costs have fallen
b)
In the long run, profits will attract new firms in industry. This causes an increase in supply, illustrated by a
shift to the right of the supply curve. This will cause prices to

Graph 1
Graph 2
If the law is passed to install new devices, then the cost of producing a toilet seat increases. Thus, the
average cost increases, causing the average cost curve to move up on the graph. It may even shift until
its lowest point lies on the

1.
2.a)
Each firm will make profits as shown since the costs have fallen
b)
In the long run, profits will attract new firms in industry. This causes an increase in supply, illustrated by a
shift to the right of the supply curve. This will cause prices to

2. The relationship between the price of starfish and the quantity demanded is inverse, since the price
drops as the quantity increases.
3. Three dozens of starfish are demanded at a price of five
4. The slope of the line between the prices of 6 and 1 is

From this graph we can determine that the equilibrium number for players decreases due to the increase
of the marginal cost when hiring another player. We can also determine that the earnings of the players
also dramatically increase. This generally occur

1.
2. There are several major factors that contribute to this observed distribution of income. Age and work
experience is one such factor. Over time, an individual typically becomes better at the job thy preform.
Thus, they are gaining work experience the

FRQ #1
Out of a total of 6 possible points, this student earned a total of 4 points
In Part A the student earned two points out of two points. One point was awarded for stating that north
will be better for Blue Mart. The other point was awarded to the st

1. The grove owner should hire 8 workers. At 8 workers, the groves marginal revenue product of
labor equals $69. The marginal input cost wage per day equals $48. This means the grove is still
earning money. At 9 workers, however, the marginal revenue prod

2. The relationship between the price of starfish and the quantity demanded is inverse, since the price
drops as the quantity increases.
3. Three dozens of starfish are demanded at a price of five
4. The slope of the line between the prices of 6 and 1 is

2. The relationship between the price of starfish and the quantity demanded is inverse, since the price
drops as the quantity increases.
3. Three dozens of starfish are demanded at a price of five
4. The slope of the line between the prices of 6 and 1 per

1.a:
b: Japan, they can produce more CD's and more DVD's than the U.S. at maximum production levels.
c: When Japan produces 1 CD (100/100), it must give up 50/100 DVDs. Therefore, the opportunity cost
of 1 CD is 1/2 DVDs. When U.S.A. produces 1 CD (90/90)

1. Marginal costs are additional costs that occur from each activity. For example, you pay to
get a picture taken, but the marginal cost is that you have to buy a frame from it to keep
it safe. Direct costs are obvious costs that are needed. For example,

1.a:
b: Japan, they can produce more CD's and more DVD's than the U.S. at maximum production levels.
c: Japan's cost of CD over DVD is 1:1/2 and its cost of DVD over CD is 1:2, meaning it is twice as better
with DVD's. U.S.'s cost of CD over DVD is 1:1/3

1. The shortage comes from excess demand and limited supply. Game consoles newly brought
about, if successful, result in high demand. Usually, the game console makers are unable to
foresee exactly how many people will buy the console, and thus make too fe